E13-5:If the bonds are convertible , earnings and shares both will change while computing diluted earnings per share .
Adjusted numerator- earnings 2000000+(5%of 2000000)(1-0.40)= 2000000+100000*60%= 2060000. Earnings would be adjusted with after tax effect of interest as if the bonds are converted .
weighted avg number of shares would be added with convertible shares which is 40000.
Diluted EPS= Earnings /weight avg number of shares = 2060000/ number of shares outstanding +40000
E13-6 Basic EPS will decrease as denominator increases with shares , diluted EPS will also decrease
E13-6 E13-6 ockholders and *** Whether FREE d are to other sockhol கனவiya the following stockholders'...
E13-5
ockholders and *** Whether FREE d are to other sockhol கனவiya the following stockholders' Corporation 11)-2 d her enger Corporation Stockholders' Equity theranda, encept whare mot proble pede parale shares her 000 shares issued din capital ack at cost, 10.000.common shares ha de equity r Le t Toal December 31, Rapid Determine the number of shares Gemminger had outstandin Determine the average issue price of Gemminger's common stock vidend of 1934 owner of one share E13-3 Refer to EL...
E13-8
ockholders and *** Whether FREE d are to other sockhol கனவiya the following stockholders' Corporation 11)-2 d her enger Corporation Stockholders' Equity theranda, encept whare mot proble pede parale shares her 000 shares issued din capital ack at cost, 10.000.common shares ha de equity r Le t Toal December 31, Rapid Determine the number of shares Gemminger had outstandin Determine the average issue price of Gemminger's common stock vidend of 1934 owner of one share E13-3 Refer to EL...
(E13-9) South Company had 1,000,000 shares of $5 par value common stock issued and out- standing on January 1, 2005. The following events took place during 2006: March 15, 2006: Purchased 100,000 shares of treasury stock for $20 per share. June 30, 2006: Reissued 50,000 shares of treasury stock for $23 per share. December 15, 2006: Reissued 10,000 shares of treasury stock for $19 per share. Required: Prepare journal entries for each of the three transactions.
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On January 1, 2020, Blossom Company issued 10-year, $1,900,000
face value, 6% bonds, at par. Each $1,000 bond is convertible into
14 shares of Blossom common stock. Blossom’s net income in 2020 was
$509,850, and its tax rate was 20%. The company had 99,000 shares
of common stock outstanding throughout 2020. None of the bonds were
converted in 2020.
(a) Compute diluted earnings per share for 2020.
(Round answer to 2 decimal places, e.g.
$2.55.)
Diluted earnings per share...
3. Dulcinea Corporation had $750,000 of net income in 2019. On January 1, 2019, there were 200,000 shares of common stock outstanding. On April 1, 16,000 shares were issued. On July 1, Dulcinea issued a 10% stock dividend and on September 1. Dulcinea bought 20,000 shares of treasury stock. The market price of the common stock averaged $40 during 2019. The tax rate is 40%. During 2019, there were 10.000 shares of cumulative, convertible preferred stock outstanding. The preferred is...
Throughout 2014, H had 3,770,000 shares of common stock issued and outstanding and 100,000 shares of 6%, $50 par value convertible preferred stock issued outstanding. Each share of preferred stock can be converted into 4 shares of B’s common stock. H’s net income for 2014 was $9,420,000. During 2014 H paid $300,000 of preferred dividends. H’s income tax rate is 20%. During the entire year ending 12-31-14, H had 400,000 outstanding and exercisable employee stock options that were granted to...
The following information pertains to the Chow Corporation for the fiscal year ended December 31, YR7: Net Income for YR7 $1,200,000 8% convertible bonds issued at par ($1,000 per bond). Each bond is convertible into 40 shares of common stock. $2,000,000 7% convertible bonds issued at par ($1,000 per bond). Each bond is convertible into 15 shares of common stock. $1,500,000 6% convertible, cumulative preferred stock, $100 par value. Each share is convertible into 3 shares of common stock. $3,000,000...
Intermediate Accounting II Homework Problems Chapter 16 1. The stockholders’ equity section of Whaler Inc. at the beginning of the current year appears below. Common stock, $1 par value, authorized 5,000,000 shares, 800,000 shares issued and outstanding $ 800,000 Paid-in capital in excess of par—common stock 16,100,000 Retained earnings 260,000 During the current year, the following transactions occurred: a. The company issued to the stockholders 500,000 rights. Ten rights are needed to buy one share of stock at $21. The...
The information below pertains to Pharoah Company for 2021. Net income for the year $1,230,000 8% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock 2,090,000 6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stock 3,830,000 Common stock, $10 par value 6,110,000 Tax rate for 2021 20% Average market price of common stock $25 per share There were no changes during...
1.) Compute net income available to common stockholders.
2.) Compute basic earnings per share. Round to two decimal
places.
3.) Compute the foregone interest expense AFTER TAX on the
convertible bonds.
4.) Compute the per share effect of the convertible bonds. Round to
two decimal places.
5.) Compute the foregone dividends on the convertible preferred
stock.
6.) Compute the per share effect of the convertible preferred
stock.
7.) Compute the incremental increase in the number of shares
outstanding for the...